Posted Date: March 25, 2011

Author:  Jana Hernandes, Service Director, Operations, Federal Student Aid

Subject: Total and Permanent Disability Discharge Information - All General Processing Performed by Nelnet Total and Permanent Disability Servicer Effective April 1, 2011 (Updated May 27, 2011)

Note: Effective June 1, 2011, the Nelnet Total and Permanent Disability Servicer will also process and service all veterans total and permanent disability discharge assignments and referrals. For complete details, including links to updated contact information, refer to the Electronic Announcement posted on May 27, 2011.

In an October 8, 2010 Electronic Announcement posted on the Information for Financial Aid Professionals (IFAP) Web site, we informed the community that the Nelnet Total and Permanent Disability Servicer (located in Denver, CO) had begun processing and servicing new general (non veterans) total and permanent disability discharge assignments and referrals on behalf of the Department of Education (the Department). We also explained that the Disability Discharge Loan Servicing Center (located in Greenville, TX) would continue to process and service loans assigned or referred to the Department prior to October 1, 2010 until we were ready to transfer these accounts to the Nelnet Total and Permanent Disability Servicer.

We have completed the necessary preparatory work. On March 21, 2011, we began transferring student and parent borrower accounts with the Disability Discharge Loan Servicing Center to the Nelnet Total and Permanent Disability Servicer. We expect to complete the transfers by April 1, 2011.

From this point forward, the Nelnet Total and Permanent Disability Servicer will process and service all general (non veterans) total and permanent disability discharge assignments and referrals.

Borrower Transfer Notification

When we transfer the Disability Discharge Loan Servicing Center accounts, the Nelnet Total and Permanent Disability Servicer will correspond with the student or parent borrower after the transferred account has been fully loaded to its system. In this correspondence to the borrower, the Nelnet Total and Permanent Disability Servicer will explain that the borrower’s account has been transferred and that it will service the account on our behalf going forward. The correspondence will include both toll-free phone number and Web site information for the Nelnet Total and Permanent Disability Servicer.

In addition to a student or parent borrower receiving correspondence from the Nelnet Total and Permanent Disability Servicer, the National Student Loan Data System (NSLDS) will be updated to reflect the transfer. After the transfer is reported to the NSLDS, both the borrower and the school will be able to view the updated information via the NSLDS Student Access Web site or the NSLDS Professional Access Web site, respectively.

We expect the NSLDS updates to be in place by mid-April 2011. If there is an unforeseen delay in making these updates, we will inform the community through a subsequent communication.

General (Non Veterans) Processing and Customer Service Going Forward

As stated above, the Nelnet Total and Permanent Disability Servicer will now process and service all general (non veterans) total and permanent disability discharge assignments and referrals. Accordingly, we have updated the following IFAP Contact Information pages:

  • The Total and Permanent Disability Discharge and Veterans Disability Discharge page under Service Centers for Students provides updated contact information for borrowers.

    The updated contact information for borrowers includes a reference to the Nelnet Total and Permanent Disability Servicer’s Special Assistance Team. This team is available to individuals who have special needs and require assistance navigating the total and permanent disability discharge process. A borrower simply needs to request assistance when he or she contacts the Nelnet Total and Permanent Disability Servicer.

Note: At this time, there is no change to veterans total and permanent disability discharge processing. Loan holders will continue to submit new referrals for veterans total and permanent disability discharge to the Veterans Disability Discharge Unit (located in Atlanta) and work with this unit to complete all referrals. In addition, borrowers will continue to contact the Veterans Disability Discharge Unit for questions about loans referred to the Department for veterans total and permanent disability discharge.

Contact Information

We appreciate the community’s support as we have transitioned to the Nelnet Total and Permanent Disability Servicer.

If you have questions about the processing or servicing of loans assigned or referred to the Department for total and permanent disability discharge, contact the appropriate service center as outlined on the IFAP Contact Information pages identified above.

   

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